<ul data-eligibleForWebStory="true">Anthropic received good news in a copyright infringement lawsuit where a judge ruled their use of books to train AI was fair use and transformative.Amazon-backed Anthropic was sued by three authors for misusing their books to train their AI chatbot Claude.The lawsuit alleged Anthropic used pirated versions of books to teach Claude to respond to human prompts.Authors claimed Anthropic built a business by stealing copyrighted books and requested monetary damages.US District Judge ruled that Anthropic's AI training did not violate authors' copyrights as AI models did not reproduce creative elements.The ruling stated that using copyrighted works to train AI models for generating new text was transformative.The decision is seen as significant for AI companies facing copyright infringement lawsuits.Judge's ruling sets legal limits and opportunities for the AI industry going forward.Some AI firms have made licensing deals with content providers to address legal concerns.Judge ordered a trial on pirated material in Anthropic's central library, though not used for AI training.The judge mentioned that buying a copy of a book later does not absolve liability for earlier theft.The ruling indicates the importance of understanding legal boundaries and opportunities in the AI industry.Overall, the ruling is beneficial for AI companies facing copyright challenges.The decision could lead to more defined legal frameworks for AI usage of copyrighted content.Anthropic's case highlights the ongoing debate around fair use and copyright in AI development.The ruling could impact how AI firms approach and handle copyrighted material in the future.